Indian govt’s subsidies distorting global sugar markets, alleges Brazil; knocks on WTO door for help

Brasilia:  The Brazilian government said on Thursday it had asked the World Trade Organisation (WTO) to establish a panel aimed at resolving its dispute over Indian sugar subsidies, according to a joint statement by the foreign and agriculture ministries.

 Indian govt’s subsidies distorting global sugar markets, alleges Brazil; knocks on WTO door for help

Representational image. Reuters.

The WTO’s Dispute Settlement Body is expected to take up Brazil’s request at its meeting scheduled for 22 July, the statement said. Australia and Guatemala also lodged complaints against India on Thursday, according to the ministries.

Brazil alleges that the Indian government has taken actions that distort global sugar markets. The South American country claims India doubled the minimum price for sugarcane since the 2010/2011 crop year with Indian sugar exports soaring in 2018/19 to 5 million tonnes from 2 million tonnes the prior year.

In February, Brazil had requested that the WTO start consultations on the subject but the two sides failed to reach a resolution, the statement said.

Updated Date: Jul 12, 2019 15:36:07 IST